Growth Hacking Presentation for BIZ Dare 2013

Transcript

1. Understanding the Growth Hacking science. www.sweetlogic.biz Hometuitionjob.com and Joblogy.com Friday, November 22, 13
2. If you are married and have kids...you’re already a growth hacker(biologically). Friday, November 22, 13
3. Distribution #1 problem for startup. Friday, November 22, 13
4. “Growth hacking is piggybacking on someone else’s mind,product or service to enable wider distribution without paying money” - Ng Boo Jiun Definition of Growth Hacking. Friday, November 22, 13
5. Growth Hacking is NOT marketing. • Growth Hacking focus on NON-PAID traffics and retention. If you pay for traffics it is marketing. • Leverage on existing users to grow. • growth is measurable after implementation. • examples - Google, Dropbox and Hotmail Friday, November 22, 13
6. Google’s Growth Hacked via Netscape • piggy back on Netscape Navigator(for free) and later on Firefox. • Netscape provides Google with massive distribution(#1 startup problem). • Now, Google pays Apple USD 1 billion to be default search engine for Apple Safari Friday, November 22, 13
7. Internet Explorer & Windows • bundle for FREE in Windows. Appear next to the Start button. • Microsoft Windows distributed Internet Explorer. • Solved another distribution problem. Friday, November 22, 13
8. Definitions : • Viral Hook - Entice the users with goodies to spread your product/ services. Like Dropbox’s - “use this link with friends”. Usually on page/software/app. • Viral Loop - Self fueling series of actions(loop) that drives users usually without them knowing about it to get more users for you. Like Hotmail’s PS I love you and Google default search engine setting. Usually happens off page(like email or chat messages) ... off page means outside your website/ app. Friday, November 22, 13
9. Google Drive Viral Hook • bundle for FREE in every Google services - Gmail, Android, etc. • Android and Gmail provide massive distribution of Google Drive. • Solved another distribution problem. Visible Google Drive icon Friday, November 22, 13
10. Dropbox Growth Hacking • Viral Hook - get users to get more users. • Incentivize current users to refer others. Getting bigger free quota. • More examples : http:// blog.kissmetrics.com/ dropbox-hacked-growth/ Viral Hook Example Friday, November 22, 13
11. Hotmail Growth Hacking • Hotmail tried billboard advertisement and had dismay result. • Piggyback on each users email with a PS. • Sold to Microsoft after 1.5 years later with 12 million users. Viral Loop example Friday, November 22, 13
12. Rules of Sciences(Physics, Chemistry,Maths) are universal. They effect your startup too. Friday, November 22, 13
13. Circle(Pi) is still circle, Light is still light, Hydrogen is still hydrogen. Billions of light years across. Circle(Pi) is still a cirle, Light is still light.. Pi =3.14159265359 Friday, November 22, 13
14. Math,Physics & Chemistry. Is your startup a scalar or vector? • A scalar - Has magnitude(size) but NO direction • A vector - Has magnitude(size) but WITH direction • Catalyst - A substance that modifies and increases the reaction* rate. • *reaction does not mean necessarily growing. It could mean pivot or shutdown. Friday, November 22, 13
15. Applying catalyst(growth hacking) to your startup • Your startup is a scalar(no direction) - growth usually unhealthy and may consume the founders. Very common with e-commerce startup. • Your startup is a vector - growth has direction(focus) and normally leads to profitable stage. Friday, November 22, 13
16. Scalar vs Vector • If your startup is scalar based - growth can be very tiring and expensive. IMHO, most e-commerce startups are scalar. Common growth tactic is to give discount.....resulting in poor retention/ loyalty. • If your startup is vector based - growth can be very rewarding. Hotmail, Dropbox... just add server or disk space but maintain pricing.Google and Facebook get to sell more ads. • You or your management decision will determine if your startup is a scalar or vector. Friday, November 22, 13
17. Scalar vs Vector • Service based startup - Google(Search Engine service), Hotmail(web email), Dropbox(cloud backup) easier to growth hack • Hardest or near impossible to growth hack is e-commerce. Despite the illusion of growth....giving discount is not growth hacking technique. Why ? Does not encourage loyalty and cultivate habits. Friday, November 22, 13
18. When To Start Growth Hacking? • Obviously if you already validated your idea and retention rate. • Plug leaks around your bucket(reason for people to leave your website) as much as possible before growth hack. • When you don’t have marketing budget ;-) Friday, November 22, 13
19. Finding growth hacking direction • Effort must be prioritized in generating lead bullets, improving traffics(SEO) and conversion(best if this means raking in the $$$). • Your product/service is working and then you can use some of the more quantitatively(market research data) driven growth techniques. • Popular term for this is data driven growth. • With generated lead bullets, you can focus on where to grow and find your silver bullet. With silver bullet, you can hit your target better and kill it easier. Friday, November 22, 13
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21. How to know your growth hacks are working ? • Your startup product/service achieved a product-market fit, and you see more signups, higher retention, more active users, more repeat purchases or whatever conversion metrics you decided. • Your NON-PAID TRAFFICS graph is higher than your PAID TRAFFICS graph. Friday, November 22, 13
22. Optimized curve* 0 25 50 75 100 2007 2008 2009 2010 Paid Traffics Unpaid Traffic * optimized curve = keeping growing Friday, November 22, 13
23. What to do when your growth hacks are working ? • Built a growth team to optimize the curve...... more more signups, higher higher retention, more more active users, more more repeat purchases or whatever conversion metrics you decided. • Plug leakages along the way. Branchout has hyper growth but poor retention. Friday, November 22, 13
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25. External Factors Influence. • Economics and Geography • The most obvious is your target market size! Your growth hacks work better if your target market size is large! • Demographics, languages, percentage of the population with access to Internet,etc. • Countries in trillion dollars market size proven to be easier to growth hack. Friday, November 22, 13
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27. Internal Factors Influence. • Is your product or service has build in referral or viral hook/loop mechanism from day one ? • Does your product/service solves problems and cultivate habit on the users ? Habit such as daily usage of your product/service will enhance growth. Friday, November 22, 13
28. What if there is no growth ? Friday, November 22, 13
29. then your website/ product/service will be known as zombie. Taking up space and consuming money for no result. Friday, November 22, 13
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31. If your startup growth gives your more time and money... it is FREEDOM, if the growth is eating into you, family and forces you to raise more money to sustain it....it is a form of CANCER. Can growth be dangerous? Friday, November 22, 13
32. Growth Hack = Increase Customers Acquisition + Retention + Monetization Activities without spending money Healthy Growth = Increase(Time + Money) a.k.a Freedom Unhealthy Growth = Decrease(Time + Money) a.k.a Cancer Friday, November 22, 13
33. “An Average hacker knows how to hack the box, Good hacker knows how to hack around the box, Great* Hacker knows how to hack the world” Think about which type of hacker you want to be...... * example - Linus Trovalds, Steve Jobs, Bill Gates, etc. Friday, November 22, 13
34. Don’t forget GROWTH HACKING is about NON-PAID TRAFFICS. Successful startups growth usually have NON-PAID TRAFFICS of 70% and above. Friday, November 22, 13
35. Thank you! Friday, November 22, 13